In the nfa/cftc rule submitted to lower fx margin and cap it at 100-1 they see that is fair and anything lower would hamper business and they talk about if its lower then 100-1 business would move else where, overseas. They say the 400-1 is ridiculous which is true but they understand a traders need for some leverage in this. The finra ruling wants the equity b/d to basically make their customers shy away from FX so they dont lose business,.
FINRA moves forward to limit Forex leverage
- Thread starter ozzymandius
- Start date
Maybe it doesn't affect NFA now, but once again, precedent is a powerful thing in US law. All it takes is a lawsuit against an NFA brokerage and before you know it, the NFA will come under increasing pressure to adopt stricter regulations. What regulation are they going to look at as the roadmap? Why the earlier established FINRA rule of course.
Seriously, write the SEC's trading and markets department and protest this. You won't be happy even if they pass a watered down version of this, it will start a precedent of increased regulation.
Seriously, write the SEC's trading and markets department and protest this. You won't be happy even if they pass a watered down version of this, it will start a precedent of increased regulation.
is this a half-ass measure to try and make defending our currency easier? limit the leverage others can use against you? dunno i was just thinking it might be but i'm unfamiliar with these markets